RBI Update: Online lenders cannot charge more interest, Court directs RBI to take concrete steps immediately

RBI Update: Online lenders cannot charge more interest, Court directs RBI to take concrete steps immediately

At the same time, RBI said that it does not regulate such a platform and its authority rests with the Centre. Advocate Prashant Bhushan, appearing for petitioner Telangana resident Dharanidhar Kanamori, said that the RBI has the right to tighten the noose.

Jagran Correspondent, New Delhi. The Delhi High Court has shown strictness against mobile app-based companies that charge huge interest from people by giving online loans. A bench of Chief Justice DN Patel and Justice Jyoti Singh asked the banking regulator Reserve Bank of India (RBI) to take strict steps in this regard at the earliest. The court has directed the central government to fix the interest rate in consultation with the RBI and submit the report at the next hearing on August 27.

The bench also said that if the government and the RBI delay in dealing with the issue, the court will deal with it through a committee of experts. During the hearing itself, Additional Solicitor General Chetan Sharma and Standing Advocate Anurag Ahluwalia have said that the matter is going to be discussed soon. He said that a committee was formed for this, which has to report. He sought time to present this report.

At the same time, RBI said that it does not regulate such a platform and its authority rests with the Centre. Advocate Prashant Bhushan, appearing for petitioner Telangana resident Dharanidhar Kanamori, said that the RBI has the right to crack down on such lending apps.

He told the court that the committee whose report has been talked about by the RBI was supposed to submit the report in April, but the report has not been submitted till now. He has said that there are about 300 such platforms and apps, which give loans ranging from Rs 1,500 to Rs 50,000 to people.